Global Journal of Business Management and Information Technology.

ISSN 2278-3679 Volume 4, Number 1 (2014), pp. 33-41

© Research India Publications
http://www.ripublication.com

Impact of Information Technology in Human Resources

Management

Dr SEYNI Mamoudou, PhD

Faculty of Law, Economics and Management FADEG
University of Tahoua Niger
Tel :+22790616281 E- mail: msmaiga@hotmail.com Box 257 Tahoua, Niger

Dr G.P Joshi
Institute Of Applied Manpower Research
Narela Institutional Area, Delhi-110040

Abstract

In nowadays top leaders fully realize the power of information technology (IT)
tools for reaching business targets. The utilization of IT tools help not only to
fulfill defined company’s goals but to optimize the work processes as well.
Trends and results of the contemporary studies constantly confirm
contribution of the IT tools in Human Resources (HR) area i.e. to accomplish
assigned HR tasks by using the source of IT capabilities. The following paper
gives a brief overview about possibilities of IT usage in HR field for
measuring and tracking human capital and using the HR information system
generally.

Key words: Information Technology, Human Resources Management,

Company’s Goals, Recruiting, Idea Management, Human Resources
Development

1 Introduction
There is no underestimation of importance and effect of the Human Resources
management at all. Lately, management of Human Resources and its needs are
becoming the center of the attention of each individual employer in every
organization. The orientation of company on human resources starts to be one of the
key tasks of a strategic management and Human Resources play an important role in
all strategic decisions. Managers of Human Resources ask for more strategic position
of their department within the organization with the aim to get to the essence of the
problem how to manage, to motivate and to increase the performance of organization.

Paper Code: 26277 GJBMIT

34 Dr SEYNI Mamoudou, PhD and Dr G.P Joshi

The importance of human potential for company increases proportionally with the
speed of changes which appear in the business area because human capital represents
a basic qualitative parameter of fruitfulness of any changes. Following that, Human
Resources Management (HRM) must aim at achieving the competitiveness of the
company in the field of HR by means of providing constant educational and training
programs for personal development of employees.
It has been scientology proven that one of the supporting pillars which can contribute
to the fulfillment of the personal policy is the usage of IT technologies in HR.
Information and Communication Technologies (ICT) - a catchall term for techniques
associated with mobile communication, internet, new media and PCs - allow
companies to improve their internal processes, core competencies, organizational
structures as well as relevant markets on a global scale. ICT is spreading throughout
every sector of the economy and has implications for almost every enterprise (Helfen
and Krüger, 2002).
Human resource processes should be focused on the strategic objectives. These
strategies are led to prepare an IT strategic plan that in turn translates into an
appropriate human resource strategic plan in the field of IT as the Figure 1 depicts
(Sameni and Khoshalhan, 2006).

Corporate Short and

strategy Middle term
HR Strategy strategies
(Emphasis on
IT)

IT strategy Long term

strategies

Fig 1 – The Framework of Information Technology Human

Resources Plan

Source: SAMENI, M.K., KHOSHALHAN, F. Analysis of Human Resource

Development for Information Technology and E-Commerce in Iran. IT Department,
Faculty of Industrial Engineering, K.N.Toosi University of Technology, Tehran, Iran.
2006, p.1190.

IT plays a critical role in leveraging and complementing human and business

resources (Powell and Dent-Micallef, 1997). The importance of using the HR - IT
tools, the authors express as follows: ”in organizations, despite increasing needs for
Impact of Information Technology in Human Resources Management 35

technological advancement, human and cultural factors play a more important role
than before. However, technology is often seen by management as essential means to
compete in the global market. To that technology, including information technology,
brings the desired results, the most important issue for an organization is how to
manage the technology with respect to human organizational aspects, how to analyze
and understand human factors guided by the norms, shared beliefs, and assumptions
of the organization, as well as by individuals’ unique values-all together known as“
culture.”” (Zakaria and Yusof, 2001)

Information systems in HR can (Armstrong, 2002):

 provide better services to line managers,
 serve as a pipeline connecting a personal policy and personal processes in all
organization and thus facilitate personal management in the company,
 provide important data for a strategic personal decision-making and enable a
quick acquiring and analysis of information for HR assistants,
 reduce cost labors at performance of personal activities.

The study called ”Effects of HRM practices on IT usage” (Lee, 2009) shows that
organizations use technologies for HR field such as employee participation, clearly
defined jobs and extensive formal training. On the other hand, according to survey,
companies which are using external IT capability, only internal career opportunities
used IT tools.
HR function used to employ IT for administrative processes, primarily payroll
processing, with little attention being paid to so-called transformational HR practices
(DeSanctis, 1986). Nevertheless the results present in paper (Bondarouk and Ruël,
2009) that ”in 2006, as the CedarCrestone 2006 HCM Survey shows, companies
broadened the scope of HRM applications: although administrative e-HRM was still
the most popular application (62% of surveyed companies), companies reported an
increasing use of strategic applications like talent acquisition services (61%),
performance management (52%), or compensation management (49%).”

2 Direction of the research

The main aims of an empirical study performed within multinational
manufacturing companies with over five-hundred employees is to identify the level of
using the HR IT tools in companies, factors on which management should make stress
during the implementation of the IT tools and simultaneously find out which IT tools
can be used in scope of HRM. The research is compiled by forty questionnaire
surveys and consecutively by direct observation in the firms and structured interviews
with fifteen HR managers. The anonymous questionnaire and interviews were focused
on the following fields:
 IT tools usage in HR field,
 Efficiency of HR IT tools usage,
 Management’s support of the HR information systems application,
36 Dr SEYNI Mamoudou, PhD and Dr G.P Joshi

 Advantages and disadvantages of HR IT tools usage,

 Implementation of HR IT tools,
 HR IT tools versus HR strategic goals.

3 Research results
The questionnaire reveals that 98 % of the respondents use IT tool in HR field.
Concerning the efficiency of HR IT tools usage 66,7 % of respondents confirmed that
HR IT tools help in everyday work considerably and 33,3 % of the respondents point
out that HR IT tools support daily work moderately.

66.7
70.0

60.0

50.0

40.0 33.3

30.0

20.0

10.0
0.0 0.0 0.0
0.0
Not at all Slightly Moderately Almost totally Very much

Fig 2 Efficiency of HT IT tools usage in %

Further the survey shows that 22 % of respondents confirmed supporting the

reaching of HR goals significantly by using of HR information system and 50 % of
respondents answered that HR IT tool support HR goals moderately and 25 % slightly
and 3 % not at all. The results are depicted in the graph:
Impact of Information Technology in Human Resources Management 37

50.0
50.0
45.0
40.0
35.0
30.0 25.0
22.0
25.0
20.0
15.0
10.0
3.0
5.0 0.0
0.0
Not at all Slightly Moderately Almost totally Very much

Fig 3 Reaching strategic goals using the HR IT tools in %

To evaluate the using of IT tools in HR management the respondents answered

on the following question “In which HR area the IT tools are used in your company?”
The results are shown in the graph:

100.0
85.0
66.7 70.0
50.0
33.3
20.0

Fig 4 IT tools usage in HR field in %

Based upon the interviews with HR managers, firstly management has to

clearly define which core HR processes are to be integrated and transferred into HR
38 Dr SEYNI Mamoudou, PhD and Dr G.P Joshi

IT systems. This is one of the crucial factors for effective implementation and
accomplishment of HR IT usage. Consequently, it must be defined which IT tools
fulfill described HR demands. Secondly, HR managers state that main advantages of
using HR IT tools are time saving, work efficiency, keeping employees fully
informed. The research reveals that HR managers should make stress on HR goals,
the HR budget in the beginning of the implementation of the HR IT tools.
The IT tools should be user friendly, service efficient and reduce HR
transactions that add no value. HR managers confirmed that usage of HR information
system is essential and it makes their work easier on the one hand but it requires
effective HR IT tools on the other hand. Further the interviews were focused on the
three HR fields where companies use the HR information systems according to online
questionnaire (Fig 3). The usage, benefit and add value of HR IT tools in firms are
shortly described.

The HR role in IT Human Resources Development

Career planning tool is a generic, learning, knowledge-based system that helps
top leaders to manage the personal development and path career of employees. One of
the most important online supports within Human Resources is tracking the Human
Resources Development Core Processes. The tool should provide all necessary
information about individual succession planning of employee, next development
measures or evaluation of overall performance and review of the potential. Experience
from many companies points out that the essential part of the tool is agreement of
individual goals between employee and supervisor which should be directly
connected to a business target. This is also connected with the fact that companies use
determination of individual goals for employees in the full range in order to reach
strategic goals of the company. One big advantage of the tool is that entered data are
stored in database which provides attainability and visibility of the history anytime
and simultaneously online system can provide a considerable cost saving. The tool
should also include the reporting, it means provide information about needed trainings
for employees, report about ideas for further employee’s personal development. The
above mentioned reports make easier the work of the Human Resources department.

The Human Resource Role in Information Technology recruiting

In nowadays, managers realize that human capital has become the last
competitive benefit and IT recruiting can broadly support efficient hiring together
with forming the workforce. In order to attract the best candidates, it is vital that both
HR and IT departments cooperate together. The HR role in IT recruiting is of key
importance, including time of crisis. The ”war of talents“ carries on, despite the
current crisis. The HR IT tools can support hiring and retaining a high potential. It
begins with launching the career website what is a very good promotional tool.
Employer can present all necessary information related to job, careers or personal
development of each applicants there. The career website should focus not only on
potential employees, but target group should also include the students, graduates or
school pupils in order to have a possibility to ”raise“ new employees for the future.
Impact of Information Technology in Human Resources Management 39

The cooperation with students can save the costs especially if company needs
specialists for future business needs. One big advantage which companies should use
via career website is to have opportunity to apply for a job online. Additionally,
company can present information about corporate culture or environment. Further, it
can be connected to the internal recruiting track system which can help to HR
generalist in communication with candidates to organize the selection processes.
System should cover the whole application process, from position approval to
candidate approach.

The Human Resource Role in Information Technology Idea

management tool
To keep high performance culture, company should maintain a continuous
improvement of core processes and activities. The tool which supports Idea
Management processes should provide how many improvement proposals are
submitted by the employees. It can also provide the information of saved revenues
and costs by implementation of improvement proposals. The main purpose of online
support in Idea management is to build a tool which gives the opportunity to all
employees to present their applicable and well-founded ideas on the one hand and on
the other hand company becomes more competitive. The above mentioned IT support
carries the advantages as follows:
 Save money,
 Avoid costs or
 Improve process performance.

Considerable benefit is an immediate possibility to create various reports and finally

to see if company fulfils the target of a key performance indicator. One of the last
advantages of IT online system is that it helps to provide availability of improvement
proposals anytime and thus enables to avoid paper form. Above mentioned gives
overview how technologies can assistance HR processes in order to reach the business
targets.

4 Discussion
The survey confirms that companies use HR IT tools and should contain all
HR processes which will sustain all parts of HR it means from ”Recruit to Retire”
functions within the company. The research presents that the importance of HT – IT
usage is getting more and more important not only due to the fact that HR
productivity increases but at the same time, the value of the organization increases,
including the most important asset – Human capital. First of all implementation HR
IT tools requires to perform analysis which provides information about benefit of IT
usage. Also during the implementation, attention must be paid to the protection of
sensitive data about employees. If the tools are implemented on higher level, it can
bring cost saving for the company, reduce process time, quality of work and finally
the major benefit is the contribution to the strategic development of the company. It is
40 Dr SEYNI Mamoudou, PhD and Dr G.P Joshi

essential that the tools are user friendly for all employees, provides data and reports
necessary for the employees´ jobs. Next point which has to be taken into
consideration is that implementation of HR – IT tools can increase the costs e.g.
purchase of the facilities, i.e. companies have to be aware of it during preparation of
budget. Nevertheless, HR IT tools must help all employees because incorrect
implementation may bring negative consequences e.g. the employees may understand
the usage of tools as an inevitable evil which does bring any effect neither them nor
the company.

5 Conclusions
Globalization brings the requirement to think how IT can contribute to
fulfillment of business strategy in the frame of Human Resources management in
order to steer the business towards excellence and reach competitiveness in the
market. Despite the fact questionnaire revealed that information technology sustains
reaching the HR goals moderately, precise plan of implementation of HR information
system can significantly support HR strategy in the company to attain defined key
performance indicators (KPI). The project should mainly contain what has to be
achieved it means how IT tools can support the KPI and which kind of HR processes
IT tools should sustain. The research will be extended by further survey.

References:

Books

[1] ARMSTRONG, M. A Handbook of Human Resources Management Practise,

8th edition. (in Czech.) Praha: Grada, 2002. 777p. ISBN 80-247-0469-2.

Periodicals

[1] BONDAROUK, T.V., RUËL, H.J.M. Electronic Human Resource

Management: challenges in the digital era.The International Journal of Human
Resource Management. Vol. 20, No. 3, March 2009. 505P.
[2] LEE, CH. S., LEE, CH. H., Effects of HRM practices on it usage. Journal of
Computer Information Systems. Winter 2009.
[3] POWELL, T. C., DENT-MICALLEF, A. “Information Technology as
Competitive Advantage: The Role of Human Business, and Technology
Resources,” Strategic Management Journal. 1997.
[4] DeSANCTIS, G. Human Resource Information Systems: A Current
Assessment. MIS. Quarterly, 10. 1986.
Impact of Information Technology in Human Resources Management 41

Other reports and documents

[1] HELFEN, M., KRÜGER, L. Information Technology, New Organizational

Concepts and Employee Participation - Will Unionism Survive?. 202p. 0-
7803-7824-0/02.
[2] SAMENI, M.K., KHOSHALHAN, F. Analysis of Human Resource
Development for Information Technology and E-Commerce in Iran. IT
Department, Faculty of Industrial Engineering, K.N.Toosi University of
Technology, Tehran, Iran. 2006.
[3] ZAKARIA, N., YUSOF, S.A.M. The role of human and organizational culture
in the context of technological change. School of Information Studies,
Syracuse University, Syracuse, USA. 2001. 0-7803-7260-3.
42 Dr SEYNI Mamoudou, PhD and Dr G.P Joshi